Transcript Slide 1
Purchasing an Aircraft Understanding the buying process Introductions • • • • • • Andy Sable, AOPA Rodney Martz, AOPA Clayton B. Healey, AIC Title Service, LLC Anne Ford, Bank of America Jennifer Giampietro, Bank of America Clint Dayhuff : AOPA Insurance Agency What we’ll cover • Deciding which aircraft to buy • Cost and financing • Insurance • The purchase process – Inspections – Paperwork – Title services • Finalizing the deal Diamond DA40 Big Decision! • What you want vs. what you need! Beechcraft Baron Cessna 172 Cubcrafters Sport Cub Considerations • Where will you fly? • How often will you fly? • Will you carry passengers? • VFR or IFR? Cost • Not just the monthly loan payment • Other costs • AOPA’s Operating Cost Calculator Brake pad maintenance If you’ve just joined us… • Welcome! • Panelists from AOPA’s partners –AOPA Insurance Agency –AOPA Aircraft Financing Program –AIC Title Service, LLC • Discussed the importance of identifying the type of aircraft you need. AOPA Aircraft Financing • • • • Bank of America Quick decisions Low fixed rates Flexible terms from 5-20 years • Free AOPA membership for the life of your loan 1.800.62.PLANE Aircraft Value - Vref • Comprehensive information on every general aviation airplane • Each aircraft different – many variables • Good place to start • Inspection 1-800-USA-AOPA (872-2672) recommended We have a question for you • Are you a. b. c. d. In the process of purchasing an aircraft? Seriously searching for an aircraft to buy? Casually looking at aircraft? Just interested in the topic? Piper Cherokee Six Your Questions for Us Cirrus GTS Insurance • AOPA Insurance Agency (AOPAIA) • 5% discount for AOPA members • AOPA Accident Forgiveness and Deductible Waiver Enhancement • 1-800-622-AOPA (2672) Before you buy • Have a mechanic do a pre-purchase inspection and flight • Ideally, the mechanic should have experience with that type of aircraft. • Placing a deposit? AIC Title Services Review Aircraft Records • Aircraft logbooks • FAA Form 337 (Report of Major Repair or Alteration), • AD compliance, • Status of service bulletins and letters, and aircraft/ component serial numbers. Airworthiness Certificate • Transfers with the aircraft • Make sure it is current – Maintained according to regs – Properly registered • Engine and airframe logbooks – Maintenance and record-keeping Sales Contract • Get your agreement in writing • Use an attorney specializing in aviation • AOPA’s Legal Services Plan – One hour consultation includes aircraft purchase agreements – $33 per year Beechcraft Baron Sales and Use Tax upon Purchase • Laws vary by state – Myths: Pick a state? Taxed where aircraft is based. – Delaware advantage? – Casual sale or other exemptions • State registration (fees) is a tax • Personal property tax in some states Federal Income Tax (if a business) • Employer expense reimbursement OK • Charity flying • Business use must have profit motive – Ordinary, necessary, reasonable, substantiated – Actual deductions are for % of flights that are business – Aircraft in taxable business using 100% deduction – pilot pays for personal use Your Questions for Us Piper Warrior Another question for you… • Are you finding this Webinar –A. Very helpful? –B. Somewhat helpful? –C. Not helpful at all? –D. I’d rather be flying Final Inspection • Visually inspect the aircraft before signing • No damage since the pre-purchase inspection • All contract conditions fulfilled • Transfer necessary documents FAA Paperwork - Overview • Bill of Sale – FAA form 8050-2 • Aircraft Registration – FAA Form 8050-1 • Existing registration from aircraft • $5 recording fee FAA Paperwork - Pitfalls • Names must exactly agree on bill of sale and registration • Form 8050-1 must be original – no copies • P.O. box address must include a physical location • Possible title liens • Risk of fraud without escrow service Professional services available • AIC Title Service – Escrow, title, and document services • Checks for liens on title • Checks airworthiness reports on the aircraft • Verifies accuracy of all documents and submits to FAA Piper Cub • 800.288.2519 or 405.948.1811 Our Last Question for You • What is the likelihood you’ll participate in another AOPA Webinar? – A. Very high – B. High – C. Possibly – D. No way Your Last Questions for Us Boeing Stearman 450 Inverted Web links Aircraft Ownership Information http://www.aopa.org/members/pic/ownership/ Vref http://www.aopa.org/members/vref/ Operating Cost Calculator http://www.aopa.org/apps/iforms/opcosts/OpC ostsInstructions.cfm Sample Sales Contract http://www.aopa.org/members/files/topics/pur chase_agreement.html Good luck! Call us with questions! AOPA’S Pilot Information Center 800-USA-AOPA (872-2672) www.aopa.org